Traditional Culture Encyclopedia - Hotel accommodation - Since hotels are difficult to make profits, why do urban complexes need to build high-end hotels?

Since hotels are difficult to make profits, why do urban complexes need to build high-end hotels?

First of all, profit is accounting profit (book), not necessarily the actual situation. If accounting profits are falsified, the conclusion that it is difficult to make profits will not be established.

Secondly, hotels are also divided into sizes, high-end or ordinary, and high-end hotels charge high fees. If it is a chain operation, customers can help each other. As long as the room rate can reach 80%, there will be no loss. Only small hotels have more losses. On the one hand, they operate independently and have poor ability to resist risks. Secondly, the charging standard cannot go up, but the expenditure standard (food, drink, water, electricity, etc. ) and high-end hotels are not much different.

Finally, the construction of high-end hotels in the city is also influenced by the local government, that is, political purposes. For example, in order to expand tourism, the government requires the construction of high-end hotels, which will also be included in the achievements of some government departments.

Personal understanding is not necessarily correct and comprehensive for your reference.